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Your Power Bill Climbs Through 2027. You Won't Use a Single Extra Kilowatt-Hour.

Updated October 24 with the federal outlook released October 6 and actual prices through August. The average residential electricity price goes from 17.30 cents in 2025 to 18.68 cents in 2027 while average household usage ends where it started. The whole increase is price. Two regions take more than three times the hit New England does, and state actuals show New Hampshire up 15% while Connecticut fell 9%.

Suburban house rooftop with power lines against a clear blue sky

Update, October 24, 2026: The EIA refreshed its outlook on October 6, and the numbers below now use it: 18.68 cents in 2027 instead of 18.59. Actual prices are in too. The Electric Power Monthly released October 23 puts the U.S. residential average at 18.19 cents for January through August, up 6.8% from a year earlier. States split even inside one region. New England as a whole is flat, yet New Hampshire is up 15.0% and Connecticut is down 9.1% to 27.47 cents, the only state that fell by more than a rounding error. Ohio and Virginia are up 13.0%, Maryland 12.6%. Ohio’s solar math got better this year. Connecticut’s got worse. (2026 figures are preliminary.)

You are not using more electricity. You are paying more for the same electricity.

That is the entire story of your power bill between now and 2027, and the federal government just put numbers on it.

The Energy Information Administration publishes its Short-Term Energy Outlook every month. The U.S. average residential price was 17.30 cents per kilowatt-hour in 2025. The October 6 forecast puts it at 18.21 cents this year and 18.68 cents in 2027.

Now the part nobody quotes. In the same tables, average residential usage per customer runs 10,479 kWh in 2025, 10,587 in 2026 after a hot summer, and 10,475 in 2027. Right back where it started.

Do the arithmetic on the average household. About $1,813 a year in 2025. About $1,957 in 2027. You pay roughly $144 more for 4 fewer kilowatt-hours.

That’s a price increase wearing a utility bill as a costume.

Here’s where it gets useful, because the national number is a blend and you don’t live in a blend. Middle Atlantic customers, meaning New York, New Jersey and Pennsylvania, go from 22.70 cents to 25.56 cents by 2027. That’s up 12.6%. East North Central, meaning Ohio, Indiana, Illinois, Michigan and Wisconsin, goes from 17.70 to 19.98 cents, up 12.9%.

New England? Up 3.6%. West North Central, the Plains states, up 4.3%.

So the fastest increases are not landing on the expensive coasts. They’re landing on the Mid-Atlantic and the industrial Midwest, two regions where rooftop solar has never been the obvious move because the rates were middling.

Middling rates are what’s changing.

This matters because solar payback runs on one input above all others: the price of the power you stop buying. Not the size of the array, not the brochure, not the 25-year savings total on page nine. The cents per kilowatt-hour you avoid. An Ohio homeowner looking at a quote that pencils at 17.70 cents is looking at stale math if the same kilowatt-hour is headed to 19.98.

And watch for the inverse mistake. A quote that assumes your household will burn more power every year is sizing an array for a home you don’t have. The federal forecast says average usage goes nowhere. If a salesperson builds consumption growth into the model to make the system look better, make them show you why yours grows when the national number doesn’t.

Rooftop output keeps climbing through all of this. The same outlook has residential small-scale solar generation going from 63 billion kWh in 2025 to 70 this year to 75 in 2027, up about 19% in two years.

Do this before you take another solar call. Pull your last twelve electric bills. Add up the dollars, add up the kilowatt-hours, divide. That quotient is your real rate, taxes and fixed charges and all, and it is almost never the number on the utility’s rate card.

Then run it. Our solar calculator takes your actual rate and your actual usage instead of a regional average, and the rest of our solar coverage is there when you want the financing side. If you already have a quote in hand, make them re-run it at your number and show you both versions.

Your rate is going up. Whether that makes solar worth it is still your call, and it is a different call in Toledo than it is in Hartford.

How Candid Yak makes money. Some of the products we write about pay us if you apply or sign up through our links. That never changes our verdict, our rankings, or the numbers in this article. We call a bad deal a bad deal whether it pays us or not. Some brands shown in our comparison tools are placeholder examples while we finalize partner agreements, and we label them as such.

Frequently asked questions

How much is the average residential electricity price expected to rise?

The EIA's Short-Term Energy Outlook released October 6, 2026 forecasts the U.S. average residential retail price at 18.21 cents per kilowatt-hour in 2026 and 18.68 cents in 2027, up from 17.30 cents in 2025. That is a rise of about 8% over two years. Actual prices are tracking it: the January through August 2026 average was 18.19 cents, up 6.8% from the same months of 2025.

Am I using more electricity?

Not over the long run. The October 2026 forecast has average residential usage per customer at 10,479 kWh in 2025, 10,587 kWh in 2026 after a hot third quarter, and 10,475 kWh in 2027. By 2027 usage is back where it started. The bill increase is price, not consumption.

Which regions get hit hardest?

In the October 2026 forecast, Middle Atlantic (New York, New Jersey, Pennsylvania) goes from 22.70 cents in 2025 to 25.56 cents in 2027, about 12.6%. East North Central (Ohio, Indiana, Illinois, Michigan, Wisconsin) goes from 17.70 to 19.98 cents, about 12.9%. New England rises about 3.6% and West North Central about 4.3% over the same stretch.

Why does my own rate matter more than the national average?

Solar payback is driven by the price of the electricity you stop buying. The national average is a blend of nine regions that range from 14.55 cents to 29.95 cents in the 2027 forecast, and states inside one region can move in opposite directions. Your own cents per kilowatt-hour, taken off your own bill, is the only input that reflects your actual roof.

Is rooftop solar output still growing?

Yes. The October 2026 outlook has residential small-scale solar generation going from 63 billion kWh in 2025 to 70 in 2026 and 75 in 2027, roughly 19% growth over two years.

Which states saw the biggest electricity price increases in 2026?

In EIA's Electric Power Monthly released October 23, 2026, average residential prices for January through August 2026 were up 15.0% from a year earlier in New Hampshire, 14.7% in Hawaii, 13.0% in Ohio and Virginia, and 12.6% in Maryland, plus 17.2% in the District of Columbia. Connecticut was the only state with a real decline, down 9.1% to 27.47 cents; Massachusetts and Rhode Island slipped 0.1%. The U.S. average rose 6.8%. The 2026 figures are preliminary.

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